Options For Dealing With Outstanding Debt Student Loan Debt vs Unsecured Consumer Debt

Yes, might encounter major problems where the consumer proposal is filed less than seven years from the date of end of debtor?s education

Discharge with respect to student loan indebtedness only available where (1) discharged bankrupt ceased attending school seven years prior to filing for personal bankruptcy, or (2) once a discharged bankrupt has been out of school for five years after the date of filing for bankruptcy a debtor can apply for a court-ordered discharge of their student loan debt

In Canada, with few exceptions, all of the unsecured debts of a consumer are discharged or forgiven in a consumer proposal or a bankruptcy. Special treatment, however, is given to unpaid student loans under Canadian insolvency law.